akshay let me disclose first ,i hold orient bell but it is less than 5% of my portfolio. so let me clarify i am bullish b’cos of cheapness and some other factors mentioned above but we have to be realistic when we evaluate stocks we hold.

1) 50 cr. profit i dont know how did u get that figure . it is at best OP and u must deduct interest and taxes. ( u may count dep. and PAT for interest repayment)
2) real estate slow down is valid concern as u pointed out.
3) 20% sales growth was due to acquisition of bell ceramic and they diluted equity for same and had taken debt and still paying large part of EBIT towards interest charges for same.(with hindsight we can say that if they did not acquire bell and had JV/outsourcing as kajaria did they would be in much better shape )

1. Who invests the capital which is required for the construction ? It is invested from AIL’s books ? – Most of the construction cost is borne from sale proceeds and some initial approvals cost and JD payment is borne from balance sheet. which as per their interviews all their projects have become cashflow positive.
2. In 6/12 projects under development are 100% AIL owned (no JD), so we need to have some understanding on Q1. Who will invest the money for construction, who owns the land currently, is it owned by AIL ? – In all the projects taken by Arvind on JD, construction cost is to be borne by Arvind and major cost will be funded from sales (verified in a call with company)
3. In the other 6/12 AIL’s share is also north of 50%. Who will invest the money for such projects ? – Major from sales and initial approvals cost from balance sheet
4. Arvind probably is a good brand in Gujarat. But at all India level, I doubt it has any of the quality factor’s associated with it, like Godrej brand. – Arvind as a brand is mostly famous for denim and textile – they are slowly launching “Arvind” as an individual brand which will be than used for many of its products including real estate like what godrej has done for all of its products
5. Next few years companies fortunes are tightly tied to upland properties fortunes as 50% of projected revenues are tied to it. Feels risky.- Yes that’s true
6. Perception that “Beyond Five” project is only residential plotting and very little needs to be done probably isn’t correct. Check our their plans – checked with company – its a plotting project wherein company on its website has given some model designs of bungalows or row houses which they can build for u if u r ready to pay for it http://www.arvindinfrastructure.com/about_beyond_five.php#horizontalTab22
   Also fact that their proportion in the project is 45% probably means, they will realize a revenue of 45%*600 cr = 270 cr. and have to spend on all the amenities listed above from that. Probably the land owner get’s the 330 cr. as cost of land and no more expenditure form his side. That’s how most JD works. – All the figures of sales written in the presentation are of company’s share and not total – so 600cr revenue means 45% of total and hence approx 1300 cr is total revenue
7. In Godrej properties case, the group land is owned by Godrej Boyce (Group company). Cost of the project development is also to be borne by Godrej Boyce. GP get’s a 10% share of revenue mainly for marketing activities, hence providing higher visibility of earnings without putting to much at stake. So we need to understand what’s the equation for AIL on these parameters. – In arvind’s case apart from the given info its nt known what structure they will do for their other land parcels. The intention of management is to separate real estate business into other entity and let a professional team focus on it and they focusing on their core business. Its written in the management discussion part of 2015 annual report.

Sundaram mutual fund lift 1.56% stake in Take Solutions Ltd.BSE Announcement on 13.10.2015

FORCE Motors Crossed 3300 today was looking to get into it since 1900.
Did not had faith in myself to invest in it was looking for confirmations.
Lesson learnt the hard way.
Time to move on with this one more learning.

Regards,
Kapil

@Rajesh1975 total share outstanding as per BSE site for dwarikesh is 1.63cr and CMP os Rs 51.6…so MCap works out at Rs 84cr..so equity is of Rs 16.3cr and balance 31cr is coming from preference shares…of the preference shares majority is owned by Neotia family

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